Group Project
Consumer Products Process Classification Framework Process: Select Suppliers and Develop/Maintain Contracts
Requirement 1: Brief Description of Process
Group 2 has decided to build widgets for sale in major retailers nationwide. This widget has been carefully engineered and designed for mass production. A prototype model has been created with all of the specifications necessary to begin bidding out the individual parts to suppliers. The factory is active and the employees are ready to assemble the raw materials, create the finished goods, package the widget, and ship the widget for distribution. The component our group is focusing on is selecting suppliers and maintaining contracts with these suppliers.
Requirement 2:Detailed Narrative of Process
Select suppliers and develop/maintain contracts
1.0 Select Suppliers
2.0 Certify and Validate Suppliers
3.0 Negotiate Contracts
4.0 Manage Contracts
1.0 – Select Suppliers
Based on product specifications, the purchasing department begins the bidding process by identifying the potential suppliers from the accounting system. Once the suppliers have been identified, meetings are setup to discuss production timelines and specification requirements. The potential supplier takes the specifications back to their office and then submits a bid. Multiple bids are received from various potential suppliers. The bids are collected and compared to one another. They are evaluated based on the following characteristics: pricing, production capacity, estimated completion/response time, and quality of materials.
2.0 – Certify and Validate Suppliers
After the bidding process is complete by an imposed deadline, the potential suppliers are then narrowed down into competitive categories. Uncompetitive bids are eliminated and the remaining bids are certified and validated for conformity to the original specifications given to the supplier. The next stage of the bidding process is based upon interviews of the suppliers’ past and current clients as references. The supplier provides the names of clients we may contact to provide comments and feedback regarding their satisfaction with the supplier’s work. In addition, past production samples from the suppliers are viewed and checked for quality. Furthermore, the widget company evaluates the supplier using data from the Better Business Bureau (BBB). Information obtained from the BBB will be used in considering any complaints about the supplier. Finally, the widget company verifies insurance certifications to make sure the supplier can meet or exceed the company’s requirements. The company eliminates bids that do not conform to their quality standards and insurance requirements.
3.0 – Negotiate Contracts
Once the selection process has matured, our company begins negotiations of pricing, production capacity, commitments for quality of materials and on-time delivery. A supplier certifies that it will be able to maintain or exceed our requirements. Finally, the purchasing department accepts a supplier to produce the materials necessary for production of the widget. A contract is signed by the selected supplier. This process is completed for each piece of material necessary to build the widget that is provided by an external supplier.
4.0 – Manage Contracts
A W-9 form is completed by the supplier and forwarded to the purchasing department. Additionally, insurance certificates are maintained within the supplier file. The pricing terms from the contracts are entered into the accounting system and this information is used to generate purchase orders with the supplier. The contract data is stored in hard copy form in the Purchasing Department’s physical file storage cabinet. Additionally, but outside the scope of our diagram, the accounting system uses the contract data to generate when an order for widgets is requested by a customer. Occasionally, an audit of the contract is traced back to the accounting system. Annually, our company will occasionally rebid the individual parts of the widget for competitiveness.
Consumer Products Process Classification Framework
Process: Select Suppliers and Develop/Maintain Contracts
Requirement 1: Brief Description of Process
Group 2 has decided to build widgets for sale in major retailers nationwide. This widget has been carefully engineered and designed for mass production. A prototype model has been created with all of the specifications necessary to begin bidding out the individual parts to suppliers. The factory is active and the employees are ready to assemble the raw materials, create the finished goods, package the widget, and ship the widget for distribution. The component our group is focusing on is selecting suppliers and maintaining contracts with these suppliers.
Requirement 2: Detailed Narrative of Process
Select suppliers and develop/maintain contracts
1.0 Select Suppliers
2.0 Certify and Validate Suppliers
3.0 Negotiate Contracts
4.0 Manage Contracts
1.0 – Select Suppliers
Based on product specifications, the purchasing department begins the bidding process by identifying the potential suppliers from the accounting system. Once the suppliers have been identified, meetings are setup to discuss production timelines and specification requirements. The potential supplier takes the specifications back to their office and then submits a bid. Multiple bids are received from various potential suppliers. The bids are collected and compared to one another. They are evaluated based on the following characteristics: pricing, production capacity, estimated completion/response time, and quality of materials.
2.0 – Certify and Validate Suppliers
After the bidding process is complete by an imposed deadline, the potential suppliers are then narrowed down into competitive categories. Uncompetitive bids are eliminated and the remaining bids are certified and validated for conformity to the original specifications given to the supplier. The next stage of the bidding process is based upon interviews of the suppliers’ past and current clients as references. The supplier provides the names of clients we may contact to provide comments and feedback regarding their satisfaction with the supplier’s work. In addition, past production samples from the suppliers are viewed and checked for quality. Furthermore, the widget company evaluates the supplier using data from the Better Business Bureau (BBB). Information obtained from the BBB will be used in considering any complaints about the supplier. Finally, the widget company verifies insurance certifications to make sure the supplier can meet or exceed the company’s requirements. The company eliminates bids that do not conform to their quality standards and insurance requirements.
3.0 – Negotiate Contracts
Once the selection process has matured, our company begins negotiations of pricing, production capacity, commitments for quality of materials and on-time delivery. A supplier certifies that it will be able to maintain or exceed our requirements. Finally, the purchasing department accepts a supplier to produce the materials necessary for production of the widget. A contract is signed by the selected supplier. This process is completed for each piece of material necessary to build the widget that is provided by an external supplier.
4.0 – Manage Contracts
A W-9 form is completed by the supplier and forwarded to the purchasing department. Additionally, insurance certificates are maintained within the supplier file. The pricing terms from the contracts are entered into the accounting system and this information is used to generate purchase orders with the supplier. The contract data is stored in hard copy form in the Purchasing Department’s physical file storage cabinet. Additionally, but outside the scope of our diagram, the accounting system uses the contract data to generate when an order for widgets is requested by a customer. Occasionally, an audit of the contract is traced back to the accounting system. Annually, our company will occasionally rebid the individual parts of the widget for competitiveness.
E&A Table
Context Diagram
Level-0 DFD
Level-1 DFD
Flowchart
Deliver Service to Customer (in class work)